VA refinance loans help veterans and their families refinance with lower interest rates

Part of the Veteran’s Administration (VA) mission is to help service members, veterans, and eligible surviving spouses remain homeowners. The VA honors this dedicated group by providing VA purchase and VA refinance loans through private lenders such as HomeTrust Bank. VA loan recipients:

  • Are current or former members of the US Armed Forces or surviving spouses.
  • Meet the VA’s character of service rules.
  • Fulfill the VA’s length of service or service commitment requirements.

The VA offers a Cash-Out Refinance Loan for veterans who need to take cash out of their home equity to pay off debt, fund education or make home improvements. The Cash-Out Refinance Loan is also used to refinance a non-VA loan into a VA loan.

VA IRRRL loans

Another type of VA loan lets you refinance an existing VA loan. It is called VA Interest Rate Reduction Refinance Loan (IRRRL) or a Streamline Refinance. IRRRLs:

  • Can only be done if you have an existing VA guaranteed loan. Its purpose is to lower the current VA loan interest rate and reduce monthly payments.
  • Can also be refinanced from an adjustable-rate mortgage into a fixed-rate mortgage.
  • Do not require a Certificate of Eligibility (COE).
  • Have different occupancy rules than other VA loans; for this loan you only need to show you previously occupied the home.

HomeTrust Bank is honored to provide these IRRRL loans in partnership with the VA. The VA guarantees a portion of these loans, which allows us to provide you with favorable VA loan rate terms.

IRRRL loan basics

  • Can be completed with no out-of-pocket costs by including all those costs in the new loan or accepting an interest rate high enough to allow HomeTrust Bank to pay the costs.
  • No appraisal or underwriting credit package is needed.
  • Your interest rate may increase if you go from an existing VA adjustable-rate mortgage to a fixed-rate loan.
  • Cash out is not allowed from the loan proceeds of an IRRRL loan.

Let our mortgage experts help you with your VA refinance loan now!